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San Francisco, California, Proposition A, Bond Issue (November 2020)

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San Francisco Proposition A
LocalBallotMeasures Final.png
Election date
November 3, 2020
Topic
City bonds
Status
Approveda Approved
Type
Referral
Origin
Lawmakers


San Francisco Proposition A was on the ballot as a referral in San Francisco on November 3, 2020. It was approved.

A “yes” vote supported authorizing the city to issue up to $487.5 million in bonds with bond revenue going to fund permanent investments in transitional supportive housing facilities, shelters, and/or facilities that serve individuals experiencing homelessness, mental health challenges, or substance use, improve the safety and quality of parks, and improve the safety and condition of streets and requiring an estimated property tax levy of $14 per $100,000 in assessed value

A “no” vote opposed authorizing the city to issue up to $487.5 million in bonds with bond revenue going to fund permanent investments in transitional supportive housing facilities, shelters, and/or facilities that serve individuals experiencing homelessness, mental health challenges, or substance use, improve the safety and quality of parks, and improve the safety and condition of streets and requiring an estimated property tax levy of $14 per $100,000 in assessed value.


A two-thirds (66.67%) vote was required for the approval of Proposition A.

Election results

San Francisco Proposition A

Result Votes Percentage

Approved Yes

294,117 70.63%
No 122,314 29.37%
Results are officially certified.
Source



Text of measure

Ballot question

The ballot question was as follows:[1]

HEALTH AND RECOVERY BONDS. To finance the acquisition or improvement of real property, including to: stabilize, improve, and make permanent investments in supportive housing facilities, shelters, and/or facilities that deliver services to persons experiencing mental health challenges, substance use disorder, and/or homelessness; improve the accessibility, safety and quality of parks, open spaces and recreation facilities; improve the accessibility, safety and condition of the City’s streets and other public right-of-way and related assets; and to pay related costs; shall the City and County of San Francisco issue $487,500,000 in general obligation bonds with a duration of up to 30 years from the time of issuance, an estimated average tax rate of $0.014/$100 of assessed property value, and projected average annual revenues of $40,000,000, subject to independent citizen oversight and regular audits? The City’s current debt management policy is to keep the property tax rate for City general obligation bonds below the 2006 rate by issuing new bonds as older ones are retired and the tax base grows, though this property tax rate may vary based on other factors.[2]

Ballot simplification digest

The following summary of the measure was prepared by the office of the Ballot Simplification Committee:

The Way It Is Now: The City provides a variety of projects and services, including:

• Mental health and homelessness programs;

• Parks, open spaces and recreational facilities; and

• Streets, curb ramps and plazas.

The Proposal: Proposition A is a bond measure that would authorize the City to borrow up to $487.5 million by issuing general obligation bonds.

Bond money could be spent as follows:

• $207 million on mental health and homelessness projects, including housing, shelters, community health, psychiatric and behavioral health facilities;

• $239 million on parks, open spaces and recreation facilities; and

• $41.5 million on improving streets, curb ramps and plazas.

Proposition A would require the Citizens’ General Obligation Bond Oversight Committee to review how this bond money is spent.

If needed, Proposition A would allow an increase in the property tax to pay for the bonds. City policy is to limit the amount of money it borrows by issuing new bonds only as prior bonds are paid off. Landlords could pass through up to 50% of any resulting property tax increase to tenants.

A 'YES' Vote Means: If you vote 'yes,' you want the City to issue $487.5 million in general obligation bonds to fund mental health and homelessness projects, parks, open spaces and recreation facilities, as well as improvements to streets, curb ramps and plazas.

A 'NO' Vote Means: If you vote 'no,' you do not want the City to issue these bonds.[2]

Full text

The full text of the measure is available here.


Support

Yes on Prop A led the campaign in support of Proposition A. A full list of endorsements can be found here.[3]

Supporters

Individuals

Organizations

  • San Francisco Democratic Party[1]
  • Black Women Organized for Political Action[1]
  • San Francisco Labor Council[1]
  • San Francisco Building Trades Council[1]
  • LiUNA Laborers Local 261[1]
  • UA Local 38, Plumbers & Pipefitters[1]
  • United Educators of San Francisco[1]
  • San Francisco Parks Alliance[1]
  • San Francisco Human Services Network[1]
  • Boys & Girls Clubs of San Francisco[1]
  • Community Tenants Association[1]
  • San Francisco Deputy Sheriffs’ Association[4]
  • San Francisco Women's Political Committee[4]
  • San Francisco League Of Conservation Voters[4]
  • League Of Women Voters Of San Francisco[4]

Official arguments

The official arguments in support of Proposition A were authored by San Francisco Mayor London Breed and the San Francisco Board of Supervisors:[1]

Vote Yes on Proposition A, the San Francisco Health & Recovery Bond!

Proposition A, San Francisco's Health and Recovery Bond, comes at a critical time. The health and economic impacts of the COVID-19 pandemic have been stark and challenged our City like never before.

The COVID-19 pandemic has made our homelessness and mental health crisis even more challenging and underscored the need to create more shelter, permanent supportive housing, and expand our mental health resources.

We have seen nearly 200,000 San Franciscans file for unemployment, and an increasing need for safe and accessible public outdoor spaces as individuals and families work and learn from home.

Proposition A provides $487.5 million for three priorities: mental health and homelessness; parks and open spaces; and street repair, all while creating new jobs that will help jumpstart our economic recovery.

Proposition A is the result of a collaborative effort, and reflects input from multiple City departments, the Board of Supervisors, and community stakeholders.

Proposition A does NOT raise taxes in accordance with the City's policy of retiring old bonds before new bonds are issued.

Proposition A:

  • Funds permanent supportive housing, shelter, and facilities to provide mental health and substance use treatment services.
  • Funds improvements to neighborhood parks, trails, playgrounds, community gardens, and recreation centers throughout the City including: Gene Friend Recreation Center in SOMA, India Basin in the Bayview, Japantown Peace Plaza, Buchanan Mall in the Western Addition, parks in Chinatown, Herz Playground in Visitacion Valley, Golden Gate and McLaren Parks, among others.
  • Funds repairs to city infrastructure including street resurfacing, curb ramps, and plazas, increasing safety and accessibility.
  • Creates thousands of new jobs to help our economic recovery.
  • Does NOT raise taxes.

Vote Yes on Proposition A to invest in the health and economic well-being of all our communities.[2]

Opposition

Opponents

  • San Francisco Taxpayers Association[1]
  • Libertarian Party of San Francisco[1]
  • San Francisco Green Party[4]
  • San Francisco Republican Party[4]

Official arguments

The official arguments in opposition to Proposition A were authored by Craig Weber:[1]

We need to support health and recovery for San Franciscans during this time of the Covid -19 Crisis, but this flawed Proposition A financing scheme is a bad deal for San Francisco.

Proposition A is a risky gamble. The office of the Controller projected that if the proposed $487.5 million in bonds are issued and sold, the total cost in interest and principal will be $960 million.

Where is that money going? The Mayor has budgeted the following:

$16.5M for Emergency Communications

$184.9M for Health Operations

$61.8M for Food Security and Human Resources

$182.9M for Housing

Why are we borrowing more funds to support services that have been budgeted for expenditures from the General Fund?

There is no financial accountability included in Proposition A, such as the Citizens Oversight Committee used in prior funding measures.

Let's build community, not debt. The City simply cannot afford more debt in addition to the unfunded pension liability for the thousands of retired city workers. Vote NO for Proposition A.[2]

Media editorials

See also: 2020 ballot measure media endorsements

Ballotpedia identified the following media editorial boards as taking positions on the ballot measure. If you are aware of a media editorial board position that is not listed below, please email the editorial link to editor@ballotpedia.org.

Support

  • San Francisco Chronicle: “The $487.5 million bond measure spreads money in needed directions. Parks from Chinatown to the Bayview district will benefit the most. But so will homeless housing, mental health and drug services, and resurfacing potholed streets. The package is part of the city’s continuing upkeep on its infrastructure. New bond debt like this one is incurred only when a prior package is retired, meaning no overall tax increase. Vote Yes.”[5]
  • San Francisco Bay Guardian: “There is pretty much unanimous agreement at City Hall (and that’s rare) in support of this $500 million bond to buy property for facilities to house homeless people facing mental-health issues and for parks and open space. We are never happy with the law that allows landlords to pass half of the cost of the property-tax hikes from local bonds onto their tenants, but we’ll go along with Prop. A."[6]
  • Bay Area Reporter: "This is a $487.5 million bond for the acquisition of real property to house or provide services to people experiencing mental health challenges, substance use disorder, and/or homelessness. Additionally, it provides funds for improvements to neighborhood parks, playgrounds, community gardens, and recreation centers. Infrastructure repairs, such as to city streets, are also included. This was placed on the ballot by the mayor and Board of Supervisors to assist the city's economic recovery during the pandemic and spur job creation. It does not raise taxes and must be approved by 66 2/3% of voters. Vote YES on Prop A."[7]

Opposition

Ballotpedia had not identified media editorial boards in opposition to the ballot measure.

Background

Overview of San Francisco's debt

As of August 2020, San Francisco had $2.15 billion in outstanding general obligation bonds, which was under the charter limit of 3% of the assessed value of taxable property ($9.04 billion). San Francisco also had $2.18 billion in bonds that were authorized but unissued at that time. The net property tax rate for 2019-2020 was $18.01 per $100 of assessed property value.[8]

Other affordable housing measures in San Francisco

Since 2014, San Francisco voted on 11 ballot measures related to affordable housing bond issues or development measures. Seven were approved, and four were defeated.

Rents in California's largest cities

The following table outlines the median rents and rents as a share of income in California's 15 largest cities in 2010 and 2016, according to the U.S. Census Bureau. The median rent increased between 2010 and 2016 in all 15 cities, with the largest percentage increases in San Jose (26.1 percent) and San Francisco (22.9 percent).[9]

The U.S. Department of Housing and Urban Development (HUD) uses a concept called rental burden as an economic welfare indicator. HUD defines the rate of rental burden as the percentage of households spending more than 30 percent of their income on rent each month. Of the 15 largest cities in California, Santa Ana had the highest rental burden at 64.8 percent and San Francisco had the lowest rental burden at 42.6 percent.[10]

Median rents in California's 15 largest cities, 2010–2016
City County Population 2016 median rent 2010 median rent 2010–2016 increase 30%+ of income on rent
Los Angeles Los Angeles 3,999,759 $1,241 $1,077 15.23% 61.20%
San Diego San Diego 1,419,516 $1,427 $1,259 13.34% 54.30%
San Jose Santa Clara 1,035,317 $1,689 $1,339 26.14% 53.30%
San Francisco San Francisco 884,363 $1,632 $1,328 22.89% 42.60%
Fresno Fresno 527,438 $901 $832 8.29% 61.50%
Sacramento Sacramento 501,901 $1,057 $959 10.22% 53.90%
Long Beach Los Angeles 469,450 $1,150 $1,033 11.33% 55.20%
Oakland Alameda 425,195 $1,189 $1,000 18.90% 54.10%
Bakersfield Kern 380,874 $1,005 $906 10.93% 53.10%
Anaheim Orange 352,497 $1,402 $1,262 11.09% 62.10%
Santa Ana Orange 334,136 $1,354 $1,231 9.99% 64.80%
Riverside Riverside 327,728 $1,194 $1,092 9.34% 60.00%
Stockton San Joaquin 310,496 $967 $917 5.45% 60.60%
Irvine Orange 277,453 $1,997 $1,788 11.69% 52.80%
Chula Vista San Diego 270,471 $1,351 $1,201 12.49% 61.40%

Path to the ballot

See also: Laws governing local ballot measures in California

This measure was put on the ballot through an 11-0 vote of the San Francisco Board of Supervisors on July 21, 2020.[1]

See also

External links

Support

Opposition

Submit links to editor@ballotpedia.org.

Footnotes